Green Banking Initiatives and Their Adoption Levels: A Comparative Study

Abstract

Green banking has become increasingly significant in India as financial institutions incorporate environmentally responsible practices into their operations. This research investigates green banking initiatives and assesses the degree of their implementation among Indian banks using a comparative framework. The focus is on identifying essential green banking practices, including digital banking services, paperless transactions, green financing, energy-efficient operations, and sustainability disclosures adopted by banks in India.

A Green Banking Adoption Index (GBAI) has been created to evaluate and compare the level of green banking practice adoption across various banks. This index is formulated using selected indicators that reflect the primary dimensions of green banking, allowing for a systematic evaluation of adoption levels. The study utilizes secondary data obtained from publicly accessible bank reports, sustainability disclosures, and official publications.

A comparative analysis is conducted to explore differences in green banking adoption among banks. The analysis uncovers notable disparities in the adoption of green banking practices among Indian banks. While certain banks exhibit a higher degree of integration of green initiatives, supported by structured policies and disclosures, others display comparatively lower levels of adoption. The findings suggest that although green banking practices are gaining traction in India, the extent of their implementation is inconsistent.